What do you mean "what is going to happen to his market share? "
He is clearly saying that it ludicrous to pursue an internet venture because there is NO MONEY to be made there. He is smart. Why waste money to generate sales that generate losses???? And tiny sales at that. Borders sells over 2 Billion a year already, and they MAKE A GOOD PROFIT.......I am sure they will not touch the internet unless it is proven to add money to the bottom line....so far noone has been able to make a profit doing it, and no analyst can really be able to predict if they ever will.
Smart man that CEO of Borders. Just because all his competitors jumped off the cliff, he is not. He is waiting to see if they fly or go SPLAT!
After all, all he is losing is perhaps 50 million or so in sales and big losses to the bottom line.
His point is so important and yet nobody seems to understand it. The market place is assigning value to these companies based on SALES and does not care about profit. Therefore, AMZN and everyone else will pursue SALES at ANY cost. No matter how much they lose they will spend more to increase sales. BECAUSE THE STOCK GOES UP. Actually , at this point if they made a profit the stock would collapse , because then it would become self evident that the stock value in relation to earnings is a joke. At the moment the stock is priced on hopes and dreams, and they die hard, especially in the midst of such a GREEDY feeding frenzy. But die they always do, and the trip down will be faster and more severe than the ride up. Always has been and always will be. the nature of people has not changed and nor will it.....greed drives it up, and fear will send it tumbling.....best of luck to you, please remember to actually TAKE some of your profits....they can evaporate so quickly that you don't know what to do, and believe me I speak from experience....good night all, see you tomorrow......;^) |
